Animal Health Solution - a Covetrus magazine for veterinary professionals
Issue link: https://www.e-digitaleditions.com/i/1474902
21 Q3 2022 | Animal Health Solutions 1. Capping rental escalations Your "Annual Base Rent" is the amount that you agree (or agreed) to pay your landlord for occupying your veterinary clinic. Securing reasonable rental rates when you open your clinic, or at renewal time, will help you remain profitable as your clinic grows. Try to protect rental rates and unreasonable escalations by negotiating a cap on annual rental escalations with your landlord. 2. Research market rental rates Do your due diligence to research rental rates for buildings in the neighborhood of your veterinary practice, and try to find out what the landlord is asking for other comparable vacant spaces in the building/center. This will help you better understand whether your proposed lease rates are fair or not. Cirrus Consulting Group has access to commercial market real estate data such as vacancy rates and rental rates. If you're curious about your rental rates, and how they compare to similar properties in your neighborhood, schedule a complimentary rent analysis with Cirrus Consulting Group. 3. Options to extend The "option to extend" provision in the veterinary office lease provides tenants the ability to extend their tenancy in the building under the same agreed upon terms in the lease agreement. The "extension deadline" is the last day that you may exercise your option to extend the lease term. Negotiating "options" into your lease is beneficial because they can protect you from rental escalations and provide you with the flexibility to stay in your space, even if the landlord has other plans for the space at the end of your term. It's always a challenge keeping veterinary clinic costs to a minimum. Paying close attention to the finer details in your veterinary office lease agreement when starting a practice or approaching your lease renewal or expiry date is important for keeping clinic costs low, and protecting yourself from financial disasters down the line. Here are five lease negotiation tips a veterinarian can follow to help control clinic costs, and avoid financial traps in the long run. Securing reasonable rental rates when you open your clinic, or at renewal time, will help you remain profitable as your clinic grows.